New Zealand Milk Production: Insights, Trends, and Weather Impact
Source: The DairyNews
In November, New Zealand's milk collection reached 239.2 million kgMS, with the non-Fonterra share accounting for 21.7%. Dry weather conditions in November began affecting milk collections, with a 0.72% increase in Fonterra's collections for the financial year to date, despite a 0.5% decrease for Fonterra itself.
The dry weather persisted in key dairying regions throughout December, raising concerns of potential drought hotspots. The National Institute of Water and Atmospheric Research (NIWA) identified three hotspots in the North Island and five in the South, including one in interior Waikato.
While the country experienced some rain over the New Year period, ongoing monitoring is essential, particularly considering the sensitivity of the upcoming dairy production curve to weather conditions. The soil moisture anomaly, especially in Waikato, has improved after a dry December, with expectations that the whole milk powder (WMP) futures curve may start to be affected.
Anticipating a December milk production print of just under 220 million kgMS, Fonterra is expected to contribute around 173 million kgMS, while the non-Fonterra group is projected to achieve its second-best production for that month, reaching approximately 48 million kgMS. Continuous monitoring of weather patterns and production figures remains crucial for the New Zealand dairy industry.
While the country experienced some rain over the New Year period, ongoing monitoring is essential, particularly considering the sensitivity of the upcoming dairy production curve to weather conditions. The soil moisture anomaly, especially in Waikato, has improved after a dry December, with expectations that the whole milk powder (WMP) futures curve may start to be affected.
Anticipating a December milk production print of just under 220 million kgMS, Fonterra is expected to contribute around 173 million kgMS, while the non-Fonterra group is projected to achieve its second-best production for that month, reaching approximately 48 million kgMS. Continuous monitoring of weather patterns and production figures remains crucial for the New Zealand dairy industry.
